Rail Regulators Streamline Process for Shippers to Challenge Unreasonable Rates

Federal regulators in December finalized the process for determining unreasonable freight rail rates, giving shippers with smaller disputes a more streamlined pathway to challenge carriers. The Surface Transportation Board adopted two rules establishing a voluntary arbitration program in addition to a new procedure to challenge rates that it is calling a Final Offer Rate Review. The reviews are meant for disputes worth up to $4 million in relief over two years, a statement said. By adopting two separate pathways, regulators are hoping to incentivize rail carriers to resolve disputes through mediation rather than intervention. If all seven Class I carriers agree to opt into the voluntary arbitration program, they will become exempt from the Final Offer Rate Review process. Read More

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